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This Insurer Is Today’s Worst Stock in the S&P 500. Here’s Why.

1. Progressive's Q3 earnings of $4.45 miss the $5.04 consensus estimate. 2. Net premiums written rose 10% to $21.38 billion, below expected $21.73 billion. 3. A Florida policy capping auto insurance profits negatively impacted earnings significantly. 4. Progressive's stock dropped 9.2%, marking the worst S&P 500 performance. 5. Net income fell 48% year-over-year, indicating significant financial strain.

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FAQ

Why Bearish?

The earnings miss and profit cap indicate underlying financial difficulties, historically leading to stock drops for insurers.

How important is it?

The earnings miss and policy changes create a significant concern for investors, directly affecting PGR and market sentiment.

Why Short Term?

Immediate market reactions to earnings and policy changes impact short-term performance, with potential long-term recovery depending on operational adjustments.

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